It is, of course, generally known to provide transaction cards useful for purchasing goods and/or services. For example, a customer who wishes to purchase a good or service may present a transaction card to a retailer. The transaction card may be a credit card, whereby an underwriter, such as a bank, for example, underwrites the purchase and the customer then owes the bank the amount of the purchase plus any interest that has accrued. In addition, the transaction card may be a debit card, whereby the amount of the purchase is directly withdrawn from the customer's account, such as a bank account or the like.
Recently, “stored-value” cards have increasingly become popular for conveniently purchasing goods and/or services. For example, an individual may purchase a stored-value card from an issuer and may add money to the stored value card. The stored-value card can then be used at the issuer or at any store able and/or willing to accept the stored-value card.
Typically, there are two types of stored-value cards: open system cards and closed system cards. An open system card is one that may typically be utilized at a number of different locations but has limited functionality. For example, a user may purchase an open system card from an issuer, and then utilize the open system card at any store able to accept the open system card. It is possible, to have open system cards that have restricted usage, in that they can only be utilized at a particular merchant or location. A closed system card is a stored-value card that is typically utilized at the place of issuance or typically at only one location or one merchant chain or a group of merchants in a cooperative arrangement. Specifically, a closed system transaction card may have specific programming that allows the closed system transaction card to have increased functionality. For example, information relating to balance information may be communicated to a user of a closed system transaction card at a point of sale. Currently, balance information cannot be provided to a user of an open system transaction card at a point of sale.
A stored-value card generally operates as follows. A purchaser buys a stored-value card from an issuer and pays an amount of cash, the amount or some portion of which is stored by the stored-value card. For example, a purchaser may wish to purchase a stored-value card so pays fifty dollars to the issuer. The issuer then issues a transaction card that represents the fifty dollars. The purchaser, or any other individual, may then utilize the stored-value card to purchase goods and/or services from the issuer and/or from any other merchant.
When a purchaser buys the transaction card, information is usually transmitted from the issuer, typically using an electronic card swiper or kiosk at a remote terminal or station, such as a point-of-sale (“POS”) device, to a computer platform, which typically consists of a database for storing information relating to the transaction card. An initial “stored-value” amount (i.e. the amount that is initially purchased to be placed on the card) is transmitted from the remote terminal to the computer platform to fill the card. The computer platform then stores the amount of purchase.
When a stored-value card is utilized, the amount of the goods and/or services is entered into the card swiper or POS device and the card is then swiped or otherwise entered. A request is sent to the computer platform for removal of funds from the card. The computer platform then sends an approval to the card swiper or POS device and the database updates the new amount of funds contained on the card. The database may further communicate the balance of the card to the card swiper or POS device so that the balance may be communicated to the user of the card. This feature is typically only available for closed-system cards.
Transaction cards typically contain a magnetic stripe for storing information relating to the transaction cards, such as identifiers to uniquely identify the card, and for security purposes. Typically, information stored within the magnetic stripe may be a fifteen-digit card identifier number, a three to five digit card security code, and an expiration date. However, any information may be contained within the magnetic stripe. Data relating to personal information or balance information is not typically stored on the magnetic stripe. However, it is possible to store personal information and other information, such as an initial balance of the transaction card, within the magnetic stripe. Alternatively, the transaction card may have a computer chip for storing information, such as personal information, or other like information. These cards are well-known in the industry as “smart cards.” When utilized, the merchant typically swipes the card using a POS device, and then retrieves balance information from the database, or otherwise receives approval for the purchase of the goods and/or services.
The difficulty with using a credit card, debit card or stored-value card as herein described is that the credit limit, account information, or remaining balance, respectively, on the card is often difficult to determine. For closed system cards, the amount contained on the card may typically be relayed to the user of the card at the point-of-sale or otherwise through use of the card, but can be easily forgotten. This can be true especially when many days, weeks or months pass before the card is used again. Moreover, it is even more difficult to obtain balance information for closed system cards, since balance information, or other information relating to the open system cards, is typically not provided at the point-of-sale.
Various ways to solve these problems have been proposed and some are currently in use. For example, a user of a credit card, debit card, stored-value card or the like can telephone a customer service representative or an “interactive voice response” system that can inform the user of the credit limit, account information, or balance on the credit card, debit card or stored-value card, respectively. Alternatively, a user of the transaction card can retrieve the information on-line by using a computer network, such as the Internet. However, this requires that an individual take the extra time to retrieve the information using a telephone or computer network. Moreover, the individual must take the time to retrieve the information each and every time the individual wishes to know the credit limit, account information, or balance on the card.
Moreover, a user of the transaction card may require account information or balance information and may not have access to a telephone or a computer to retrieve the information. An alternate way of retrieving account or balance information is to use a remote terminal or station, or otherwise request a salesperson at a remote terminal or station for assistance. Information may be retrieved by swiping the transaction card at a POS device. However, this requires time and energy by the user of the card to find a remote terminal that may be utilized for this purpose, and/or for a salesperson at the remote terminal to read the card and request the information.
In addition, a user of a transaction card may utilize the transaction card at restaurants, hotels, car rental agencies, or other establishments where the transaction card is typically “preauthorized” for an initial asking price or “overauthorized” for an amount over the initial asking price. For example, a transaction card can be preauthorized at a merchant prior to settling an invoice for an amount. If a user of the card, or the merchant, does not know the balance on the card, the card may be rejected if the preauthorization is for an amount greater than the balance of the card. When the preauthorization exceeds the limit or the balance, the card can get rejected and the user and the staff at the merchant may take more time to correctly process the transaction. Typically, this may involve contacting a customer service representative of the card issuer to correctly process the transaction. If the card user or the merchant knew the precise limit or balance on the card, the merchant could charge the balance of the card and the remaining amount the customer could then cover using cash, check or any other transaction card, such as a credit card, debit card, or other stored-value card.
A need, therefore, exists for a transaction card that provides real-time information relating to a credit limit, account information, balance, or other information, which aids a user in utilizing the transaction card. Moreover, a need exists for a transaction card that aids consumers and merchants in processing transactions via the transaction card quickly, efficiently and effectively.